Business Plan Final Work

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY Business Plan for Brilliant Dew Water Works Inc. Brilliant Dew Water Works Inc. Iloilo City, Philippines 5000 143-1111 January 1, 2018 Presented by: Regina Pantajo Riza Consumo Margie Tomias April joy Andres Ramon Jamola Jr. BIT-ELX 3P PRESENTED TO: MR.GERARDO ARAQUE ITM 11 INSTRUCTOR Iloilo Science and Technology University (ISAT-U) Burgos St., La Paz Iloilo City, Philippines

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY HOW WATER IS IMPORTANT IN OUR DAILY LIFE? The human body is primarily water. Infants are made up of 70 percent water, while adult males are 60 percent and females are 55 percent. Water provides the medium to make our blood, helps move food through our digestive tract and removes waste from every cell in our body. Drinking a minimum of 64 oz. of water daily is good to replace what is lost through metabolism. Our specific water needs should take to account our physical activity level and the geographic region in which we live. Water hydrates the body. It provides the medium for electrolytes to circulate throughout our body. Water also helps regulate pH balance in your body. Water has a chemical property that makes it able to absorb and release heat to maintain the temperature of the environment it is in. Improved water supply and sanitation contributes significantly to the eradication of poverty. Today, over 700 million people don’t have access to safe drinking water and 2.5 billion can’t access basic sanitation. Investing in Water and Sanitation is an investment for the future. THE BUSINESS Objectives  To repay initial bank loans by the end of the first year of operation.  To produce a net profit of at least 80,000.00 Php by the 2 nd year of operation.  To expand additional retail location outlets by the next 3-4 years of operation and explore additional expansion of more company-owned or possibly franchised outlets after 5 years. Business Description Brilliant Dew Water Works Inc. Our operation will begin on the next year 2018 of January. Will sell safe and clean water beverages through a retail outlet in Iloilo City. The station will have a bar and seating area as well as a service counter and will serve beverages prepared on the premises for consumption there or off-site, along with prepackaged products like baked goods. The store, which will also include a drive-through window, will be located in an existing facility near the Burgos St., La Paz, Iloilo City. We will start initially with our strength and as our business grow, we will add additional facilities and equipment for the benefit of our service to people. We will also work with full service to our customers and create counters that is not available anywhere else, and we do it so with passion. We want to be a pleasure to do business with, and we want to create high quality, highly functional state of the art processes and services .

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

THE MARKETING PLAN Products and Services including its advantages and disadvantages Brilliant Dew will sell safe,clean and purified water and other functional beverages to health-conscious consumers in Iloilo City. The product line, all purchased from outside vendors, and will consist of approximately 15 different purified water and other functional beverages, in addition to selection of freshly baked breads, muffins, cookies and other locally produced foods. Drinking water — Drinking water is just that: water that is intended for drinking. Purified water —Purified water is water that comes from any source, but has been purified to remove any chemicals or contaminants. That’s what Brilliant Dew Water Works Inc. Is doing, we go on through different types of purification include distillation, deionization, reverse osmosis, and carbon filtration. Brilliant Dew Water Works Inc. also caters 4 products. These are the following:    

Mineral Water Purified Water Alkaline Water Pi Water

Mineral Water -Is water from a mineral spring that contains various minerals, such as salts and sulfur compounds.Mineral water may be effervescent (i.e., "sparkling") due to contained gases. Purified Water -Iswater that is mechanically filtered or processed to be cleaned for consumption. Distilled water and deionized (DI) water have been the most common forms of purified water, but water can also be purified by other processes including reverse osmosis, carbon filtration, microfiltration, ultra filtration, ultraviolet oxidation, or electro dialysis. Alkaline Water -Alkaline water, also known as ionized water, is a beverage that is neither acidic nor neutral on the pH scale, having a level above 7.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Pi Water Is the water that is very similar to your body water (Living Energy). Living energy means “the energy to live.” Pi Water has the same function (energy) that your body water has. Water purification plays a key role in ensuring access to safe drinking water. Safe drinking water is our concern because it positively impacts the health of the entire community. Systems are in place to ensure ongoing water quality, including water quality testing. The testing helps ensure the water treatment process results in a product that meets federal water quality guidelines. Brilliant Dew analyzes the water we use in our production that involves looking for several kinds of contaminants, including unsafe levels of organic, inorganic, microbial and/or radioactive contaminants. Brilliant Dew will sell primary products that is functional in eight steps of purification to make sure that our product is safe and clean:        

Screening Pre-treatment Coagulation and Flocculation Sedimentation Filtration Disinfection Corrosion and scale control Taste and Odor control

There are no disadvantages to water purification -- it's essential for healthy drinking water -- but it has some shortcomings because it may not remove every possible contaminant from drinking water. Potential Market Brilliant Dew will target health-conscious and generally well educated and affluent consumers who are interested in trying new products and dissatisfied with the limited selection and lack of personal service which is mostly found in grocery store-type water retailers. Our other projected customers are those near to our station. We will also be selling our products in Gaisano Malls Groceries, SM Malls Groceries, Supermarkets and Convenient Stores such as 7/11 (seven eleven), I-Mart, Quix Mart, Munsterrific, Schools cafeteria and Restaurants. This business will also sell products to the public.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Here listed below is the graphed detail of some of our target consumers.

Demographic Factor

Adults ages 35-55 years old

Young adult ages 18-35 years old Water Consumption

Level of awareness on our products

Affordability of our products

Adolescent ages 10-17 years old

Children ages 6-9 years old

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Competitors Brilliant Dew Water Works Inc. will be new to Iloilo City. Competitors are also primarily sell mass-market waters through grocery store-type locations and do not focus on the water beverage market. Brilliant Dew will come from educating consumers about the appeal and benefits of water beverages and from providing high-quality products not available in grocery stores. Price competition will be a minimal concern given current market condition. Our primary competitors are: Nature's Spring Mineral Water - Iloilo in Iloilo City The business Nature's Spring Mineral Water - Iloilo in Iloilo City is listed in the category Bottled Water in the Yalwa Business Directory. Alternative companies listed for this industry include Quench-O Purified Drinking

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY Water, Nature's Spring Mineral Water - Iloilo or Nature's Spring Mineral Water - Iloilo located at Sportsville Sambag, Jaro, Iloilo City, 5000, Iloilo. Currently, there are 7 companies listed on Yalwa in the category Bottled Water in Iloilo City. The industry Bottled Water belongs to the category Drink. In this category you can also find listings for the industries Cafes, Breweries and Liquor Store Iloilo City. Ong Bun Water Station OB Water Station at # 73 Fuentes St., Iloilo City Michelle/May Tel. #3351271 Oasis Water Company In 1984, Oasis become the first company to introduce 5- gallon bottle in the UAE. We now have the largest distribution fleet in the country to make sure your water is delivered on time, every time. Long Life’s Natural Alkaline Water Station Address: McArthur Drive, Lapaz, Iloilo City, 5000 Iloilo Phone:(033) 320 1925 Dragon Farm Purified Drinking Water Corporation Address: Lot 1, Block 13, Sampaguita Street, Alta Tierra Village, Jaro, Iloilo City, 5000 Iloilo Phone:(033) 320 4232 Crystal Pearl Water Refilling Station Address: 14 Fajardo Street, Brgy. Fajardo, Jaro, Iloilo City, 5000 Iloilo Phone:(033) 503 3371 Pricing Brilliant Dew will offer products on the following prices:    

Mineral Water Purified Water Alkaline Water Pi Water -P

- P 10.00 - P 15.00 - P 20.00 150.00 – P 200.00

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY Pi Water has the highest price since Pi Water is a type of water which is through thorough experimentation to satisfy customers. In addition, larger sizes of water will be sold for customer carryout or delivery. They will range in size from one-liter bottles to 20-liters plastic jugs at prices . Products will be sold on a cash basis to retail customers. Corporate customers, expected to represent an insignificant proportion of sales at beginning, will be involved and given 30 days to pay. As for the pricing strategies, like any other firm, Brilliant Dew Water Works Inc., gathered information through surveying 100 people from the area where the firm will be located at. The survey was about the type of water people in the area most likely used in drinking, nearby refilling stations, and the pricing scheme of the nearby refilling stations. Based from the survey, the researchers concluded prices that are not that high so that it can compete with the nearby stations. In addition, the survey also included comments and suggestions so that the outcome of the refilling station will attract more customers and that it can reassure the owners that the customers are satisfied with their service. Marketing Methods Brilliant Dew’s Overall marketing strategy will be to educate consumers about the benefits of its water products and beverages to promote the availability of these products through Brilliant Dew. Customers will be reached through fliers, newspaper advertisements and special events. Location also plays an important role in marketing and promotion with the business being located near a high-traffic retail area in Iloilo. Brilliant Dew will promote its water drinks to customers through:  Regular newspaper advertisements focusing on the benefits of water beverages.  A Publicity campaign that will spotlight corporation owners on healthrelated TV and radio broadcast and position them as experts in print publication.  Educational and promotional fliers that are distributed to residences within two kilometer radius.  Discounts offered to groups such as health-food cooperatives, organic gardening clubs and cultural association. TECHNICAL (Production) PLAN These are the materials requirements in our business:

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

1. Water Refilling Machine 2. Renovation or New Store at least 20sqm. Size 3. Delivery vehicle a) For house delivery b) Small Tank Truck 4. Business permit and other legal doc. 5. Initial Supplies/ Miscellaneous a) 150 Bottles slim b) 50 Bottles round c) Heat gun d) Stickers Brilliant Dew will include this following purification process in order to make sure that the water we produce is purely safe and clean.

In our production, we include this following processes:  Screening Water from lakes, rivers or the ground passes through a screen as it enters the water treatment plant. When the water source is a lake or river, the screen serves an important function, keeping out large natural contaminants such as plants and wood, or fish. If ground water is used,

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY screening may not be necessary since the water has passed through layers of the earth in what is essentially a natural screening function.  Pr-treatment Pumps bring “raw" or untreated water, often from lakes or rivers,Into the purification plant through screens that exclude fish, weeds, branches and large pieces of debris. Screening may not be necessary for groundwater. The plant may aerate the water at this point to increase the oxygen content and thus help remove problematic odors and tastes.  Coagulation and Flocculation The purpose of these two steps is to clear water of the small particles that cause it to be turbid or cloudy. Turbidity renders the water hard to disinfect. The water is rapidly agitated to disperse coagulant chemicals throughout it. The small particles, including many bacteria, begin to form large clumps called flocs or floccules. In flocculation, the water is mixed gently so that these clumps combine and precipitate out further.  Sedimentation The water and flocs are pumped into sedimentation basins. Here, the flocs settle beneath the water so that they can be removed. About 85 to 90 percent of the suspended particles responsible for turbidity are removed at this point, including large amounts, but not all, of the bacteria.  Filtration In filtration, the water flows through a multilayer medium such as quartz sand, activated carbon or anthracite coal in order to remove up to 99.5 percent of the solid materials remaining in it, whether flocs, microbes or minerals. This step usually is the last one in the process of removing solids from the water.  Disinfection Disinfection kills off disease-bearing organisms in the water. Mostwater treatment plants use chemicals, generally chlorine compounds, as disinfectants.Although chlorine is still one of the most common disinfectants, ultraviolet radiation and ozone gas are becoming more widespread. Chlorine is increasing in cost and has some known toxic effects on humans and fish. In addition, some disease-carrying microbes like Giardia and Cryptosporidium resist chlorine.  Corrosion and scale control The pH of the water is adjusted so that it neither corrodes nor deposits too much scale in pipes.Excessive amounts of scale can disrupt plumbing

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY systems, but small water distribution system is desirable. As well as causing leaks and other damage, corrosion releases pipe metals like lead and copper that jeopardize human health.  Taste and Odor control Unpleasant tastes and odors remaining in the water, such as those from algae, often do not pose any health hazards. Yet consumers prefer to do without them. So water purification plants often remove tastes and odors through additional chemical treatment, ozonation or filtration. At this stage, some municipalities also require the addition of fluoride to the water for dental health. COMPANY ORGANIZATIONAL CHART

Manager

Bookkeeper

Administrative Assistant

Technical Assistant Front Liner Person # 1

Delivery Man Person # 2

 Manager -Overseas store operations at least 4 hours a day  Bookkeeper / Accountant -Makes financial statement of business operations  Administrative Assistant -Logs and handles cash sales and purchases and monitors the business  Technical Assistant -Maintains and runs the machine  Front Liner (Person # 1) -Accepts and refills containers of customers  Delivery Man (Person # 2) -Transport refilled containers to customer’s home

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Job Description and Job Specification

Manager Job Description Maintains staff by recruiting, selecting, orienting, and training employees. Accomplishes staff results by communicating job expectations. Establishes strategic goals by gathering pertinent business, financial, service, and operations information. Accomplishes financial objectives by forecasting requirements. Maintains quality service by enforcing quality and customer service standards. Maintains professional and technical knowledge by reviewing professional publications; establishing personal networks; bench marking state-of-the-art practices; participating in professional societies. Contributes to team effort by accomplishing related results

Job Specification

Approximately 4-6 years of sales experience in the marketing industry. Experience with a company in a related company sector. Extensive experience of developing, maintaining and delivering on marketing strategies to meet company objectives and strong understanding of customer and market dynamics and requirements. If applicable, a willingness to travel and work in a global team of professionals.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Job Description

Maintaining the financial records of the company using bookkeeping software and online spreadsheets

Job Specification

Trained in QuickBooks accounting package Relevant Bookkeeping Experience

Maintaining records of subsidiaries

Knowledge of Microsoft Office & Internet

Preparing and processing payroll/s

QuickBooks Accounts experience

Reconciling all accounts periodically

Excellent interpersonal skills

Preparing monthly, quarterly, half-yearly, and yearly financial statements Calculating taxes, collecting bad debts, paying creditors, and analyzing financial statements Producing accounting reports and income and expenditure statements Processing sales invoices, receipts and returns and maintaining a monthly profit

Numerate & Literate Excellent organizational skills Able to prioritize Able to work to deadlines Able to work on own initiative Discreet Flexible Self Motivated

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Job Description

Maintains work flow by studying methods; implementing cost reductions; and developing reporting procedures. Creates and revises systems and procedures by analyzing operating practices, record keeping system. Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs. Maintains supplies inventory by checking stock to determine inventory level. Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies. Contributes to team effort by

Job Specification

Basic reading, writing, and arithmetic skills required.

Knowledge of Microsoft Office and telephone protocol.

Excellent communication skills both written and oral and to use initiative to organize and prioritize work and meet deadlines.

Ability to work as part of a team and use own initiative where applicable and to operate data management and filing systems, and interpret and analyze data.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Job Description

Job Specification

Ensure legal compliance of OEA packaging, both suitability for purpose and disposal.

Excellent interpersonal skills to provide quality customer service to both internal and external customers.

Strive to minimize environmental impact of packaging, operations, and waste management.

Ability to interact with different levels of personnel.

Strong organizational and time management skills. Carry out environmental and personnel swabbing and ATP evaluation of hygiene systems.

Evaluating and trialing new machinery for water processing and improving production processes.

Additional experience may be substituted for lack of formal degree.

Has at least vocational 2 year diploma.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Job Description

Job Specification

Knows how to drive a 10wheeler truck or less.

At least high school graduate

Knows how to operate water station equipments.

Hardworking

Has valid license Contributes to team effort by accomplishing related results as needed.

Has good personality Who can work under pressure Self Motivated

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

Front Liner Person # 1

Job Description

Job Specification

A person who can be all around in a water refilling station business (except manager, bookkeeper and administrative assistant)

At least high school graduate.

A person who at least knows how to operate water processing equipment.

Who can work under pressure

Contributes to team effort by accomplishing related results as needed.

Pro-active Team Worker

Hardworking Has good personality

Self Motivated

Efficient at work Knows how to deal with customers.

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City

COLLEGE OF INDUSTRIAL TECHNOLOGY FINANCIAL PLAN Salary, Benefits and Incentives (Working Capital) Salary Technical Assistant

Front Liner

P250.00/day

P200.00/day

Benefits

Incentives

SSS

Service

Phil Health

Incentive

Pag - ibig Fund

Leave

13th Month Pay

Meal and Rests

Overtime Pay

Period

and

Holiday/

Holiday/Rest

Christmas

Day Pay

Bonus

Night Shift

Mid-Year Bonus

Differential

Cost of Living Allowances Paid Holiday

Delivery Man

Total

P200.00/day

and Vacation Leaves

P16,9000.00/mo nth

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY CAPITAL INVESTMENT

1. Water Refilling Machine

P 250,000.00

2. Renovation or New Store at least 20sqm. Size 3. Delivery vehicle a) For house delivery b) Small Tank Truck

P75,000.00

4. Business permit and other legal doc. 6. Initial Supplies/ Miscellaneous a) 150 Bottles slim P18,750.00 b) 50 Bottles round P 7,500.00 c) Heat gun P 2,500.00 d) Stickers P 3,000.00

P 150,000.00

P 10,000.00 P 31,750.00

6.Others

P 8,250.00

TOTAL

P 525,000.00

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Republic of the Philippines ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY La Paz, Iloilo City COLLEGE OF INDUSTRIAL TECHNOLOGY

First Year

Second Year

1. Manpower / Salaries P 203,450.00 195,000.00 Technical Assistant -P250/day Front Liner -P200/day Delivery Man -P200/day 2. Electric Bill 3. Phone Bill 4. Transportation / Gas Allowance 5. Consumables and Others GROSS EXPENSES

P18,000.00 P6,000.00

P 203,450.00

P30,000.00 P7,200.00

P18,000.00

P12,000.00 P257,450.00

Third Year

P12,000.00

P12,000.00 P264,650.00

P

P24,000.00 P4,800.00 P12,000.00

P12,000.00 P248,300.00

Operating Expenses MONEY ALLOCATION 1. Water Refilling Machine P500,000.00 2. Renovation or New Store at P 250,000.00 least 20sqm. Size 3. Delivery vehicle P 500,000.00 4. Business Permit and other P 10,000.00 Legal documents (DTI, Mayor’s Permit, Water Testing, etc.) 5. Initial Supplies/ Miscellaneous P 50,000.00 a) 150 Bottles slim P 20,000.00 b) 50 Bottles round P 10,000.00 c) Heat gun P 10,000.00 d) Stickers P 10,000.00 6. Others P 30,000.00 TOTAL P 1,390,000.00 Brilliant Dew needs P 1,500,000.00 in short-term financing to cover start-up cost, purchase necessary equipment, and provide working capital until the business can support itself from cash flow.The owners will invest P1,000,000.00 of their own cash, each of them will provide P 200,000.00 and the remaining balance worth P500,000.00 will be borrowed initially from the bank. Interest payment will begin after the first month. After 10 months, operations will generate sufficient cash to pay down the balance of the loan in two balloon payments, which will result in the loan being paid off by the end of the first year. The owners are prepared to pledge personal assets as collateral for this loan.